Counterpoint Research Expect widespread adoption of AI-focused PCs soon, along with laptops and desktops.

Welcome to the age of AI PCs, every 3 out of 4 laptops are expected to be equipped with advanced AI capabilities.

(News for the newspaper): Personal computers (PCs) have been used as mass production devices for decades. But now we're entering a new era of artificial intelligence (AI)-based PCs, thanks to the boom in generative AI (GenAI). We believe that inventory correction and demand weakness in the global PC market have already returned to normal, including the impact of COVID-19 at large.

All this has created a relatively healthy backdrop for the reshaping of the PC industry. Counterpoint estimates that nearly half a billion AI laptop PCs will be sold during the period 2023-2027, with AI PCs driving replacement demand.

Counterpoint separates GenAI laptop PCs into three categories – AI-based laptops, AI-advanced laptops, and AI-capable laptops – based on different levels of computational performance, relevant use cases, and computational performance performance. On.

We believe that AI-based laptops, which are already on the market, can perform basic AI tasks but not fully GenAI tasks and, from the beginning of this year, on coffee tops (tera operations per second). will also be replaced by more AI-advanced and AI-enabled models. ) is powered by NPU (Neural Processing Unit) or GPU (Graphics Processing Unit) to perform advanced GenAI tasks well.

Counterpoint predicts that penetration of AI-advanced laptops, which will make up the majority of the AI ​​laptop PC segment, will grow over the next two years as chip vendors mainstream GenAI capabilities. With GenAI use cases proliferating at the edge or in the cloud or in hybrid ways over the next few years, GenAI will become a reality and the PC segment must have the capability.

Building the right kind of tools and ecosystems will be critical to adopting this. Players like Qualcomm have already stepped up with partners like Microsoft, Hugging Face and a set of advanced AI stack toolsets, developer evangelism.

While the overall laptop PC market will register ~3% CAGR during 2023-2027, the AI ​​laptop PC segment is bound to grow at 59% CAGR. Advanced semiconductor materials from compute to memory will increase the positive ASP (average selling price) associated with new GenAI capabilities, translating into greater value for consumers than ever before. In addition, we estimate that AI laptop PCs with the ability to run advanced GenAI applications will account for three out of every four laptop PCs sold in 2027.

– Senior Analyst William Lee

Generative AI is supported by both the cloud and the edge.

The adoption of GenAI in computing, which initially depended entirely on the cloud, guarantees high computational capacity and performance, from model training to predicting millions of potential requests per second. However, this is not feasible and feasible from a capacity, cost, and energy perspective. As a result, GenAI capability at the edge or in the PC becomes paramount.

Also, apart from improved work efficiency, data privacy, and security are also important, which can be facilitated by GenAI applications. It also becomes critical for AI to maintain data autonomy and environmental efficiency.